The Political Business Cycle Refers to

Multiple Choice

The political business cycle refers to

A) the fact that about every four years some politician advocates greater government control of the Fed.
B) the potential for a central bank to increase the money supply and therefore real GDP to help the incumbent get re-elected.
C) the part of the business cycle caused by the reluctance of politicians to smooth the business cycle.
D) changes in output created by the monetary rule the Fed must follow.